BILL ANALYSIS
AB 2365
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 2365 (Lieu)
As Amended August 2, 2010
Majority vote
-----------------------------------------------------------------
|ASSEMBLY: |71-0 |(May 10, 2010) |SENATE: |34-0 |(August 9, |
| | | | | |2010) |
-----------------------------------------------------------------
Original Committee Reference: V. A.
SUMMARY : Renders a person who has violated the rights of a
service member under existing law liable for attorney's fees,
court costs, and damages. Specifically, this bill :
1)Holds a person who violates these specified rights of service
members liable for actual damages, reasonable attorney's fees,
and costs incurred by a person seeking to enforce the rights.
2)Waives the filing fee and court costs for a person seeking to
enforce the specified rights.
3)Requires the court to set a hearing date within 25 days after
a petition is filed, unless good cause is shown to delay the
date of the hearing.
4)Prohibits the court from charging a fee for the filing of a
petition for relief.
The Senate amendments clarify the addition of the attorney fee
language to two sections pertaining mostly to court actions.
EXISTING LAW :
1)Provides legal rights, as specified, for service members with
regard to credit agreements, court proceedings, interest
liabilities, eviction proceedings, contracts, mortgages and
trusts, leases, life insurance policies, taxes and
assessments, and health insurance policies.
2)Authorizes a service member to apply to the court for relief
of an obligation, liability, tax, or assessment, as specified.
Existing law requires a party to provide notice before the
court grants relief. Further, existing law requires the court
AB 2365
Page 2
to provide a hearing before granting or denying relief.
3)Establishes the California Military Families Financial Relief
Act and the California Military Families Financial Relief Act
of 2005, which provide financial relief for service members
called to active duty service.
FISCAL EFFECT : This bill is keyed non-fiscal.
COMMENTS : Obtaining the representation of an attorney is often
a difficult endeavor for service members seeking financial
relief or the enforcement of protections pertaining to
contractual obligations and court proceedings. Many attorneys
are unwilling to represent service members in such cases because
damages may be minimal or non-existent. Additionally, in
instances where damages are awarded to a service member because
of a loan default where the lender violated the Military and
Veterans Code, the attorney will typically take a 1/3 to 40
percent contingency. This does not make the service member
whole again, as the loan will remain in default until the lender
receives the remaining 1/3 to 40 percent needed to resolve the
issue.
According to the author, "The service member is primarily
seeking an order from the court compelling the lender to stop
violating the law and honor his or her requests. An example is
a case to defer a service member's mortgage after the
institution has wrongfully denied the service member the
deferral protections. There would be no damages in a case where
the service member is only seeking a deferment. There are no
damages to pay an attorney in an injunction action."
Analysis Prepared by : Eric Worthen / V.A. / (916) 319-3550
FN: 0005348